Understanding Poverty in South Africa

Definition of Poverty

• Poverty is interpreted and understood differently by people
• It is a multi-dimensional phenomenon that includes essential dimensions of living standards
• Definitions are based on the idea of a state of deprivation
• Definitions are based on basic needs
• In South Africa, poverty is a political issue
• Definitions are attached to income, inequalities, and disparities resulting from past policies
• Examples includes the Native Act of 1913, and Group Area Act

Types and Measures of Poverty

• Absolute
• Relative
• Situational
• Generational

Absolute Poverty

• A condition where individuals or households lack access to the most basic human necessities required for survival
• As of 2022, the World Bank defines is as living on less than $2.15 per day
• Extreme poverty is living below $2.15 per day
• Moderate poverty is living between $2.15 and $3.65 per day for lower-middle-income countries
• Higher poverty threshold is indicated by living on $6.85 per day, for upper-middle-income countries

Key Indicators of Absolute Poverty

• Malnutrition and hunger occurs when individuals cannot afford enough food to meet their dietary needs
• Lack of clean drinking water, which means dependence on unsafe water sources increases disease risks
• Inadequate housing and sanitation, or overcrowding, slums, or homelessness, result from extreme poverty
• Limited access to healthcare means people suffer from preventable diseases like malaria or tuberculosis, due to lack of medical services
• Low levels of education means that children in absolute poverty often cannot attend school, leading to a cycle of poverty

Relative Poverty

• "Relative poverty" refers to people whose basic needs are met, but who, in terms of their social environment, still experience some disadvantages
• Relative poverty refers to a condition where individuals or households have significantly lower income and resources compared to the average standard of living in their society
• Those affected have access to basic necessities such as food and shelter
• Those affected lack the financial means to afford decent housing, healthcare, education, and social participation, leading to economic and social exclusion

Situational Poverty

• Generally caused by a sudden crisis or loss and is often temporary
• Events include economic downturns, environmental disasters, divorce, or severe health problems

Key Indicators of Situational Poverty

• Divorce or family breakdown as the death of a spouse can lead to financial hardship, especially for single parents
• Women and children are often the most affected by poverty after family separation
• War, conflict, and forced migration cause wars and political instability, displacing people, leading to sudden economic vulnerability
• Refugees often experience situational poverty as they struggle to rebuild their lives in new environments
• Economic recession or inflation such as the 2008 financial crash or the COVID-19 pandemic
• These instances cause massive job losses and reduce income opportunities, and rising inflation leads to basic goods becoming unaffordable for many people
• Natural disasters like earthquakes, floods, hurricanes, and wildfires destroy homes, businesses, and livelihoods
• Farmers can experience poverty due to droughts or crop failures

Generational Poverty

• Occurs in families where at least two or more generations have been born into poverty and continue to experience it
• Generational poverty is a long-term cycle that is difficult to break due to structural and systemic barriers, unlike situational poverty, which is temporary and caused by unexpected crises
• Families are affected by generational poverty, lacking the tools, resources, and opportunities needed to escape poverty
• These include access to quality education, stable employment, financial literacy, social mobility, and networks of support

The Deprivation Trap

• According to Chambers in 1983, the poor are 'trapped in a cycle of poverty'
• There are several disadvantages:
• Poverty
• Physical weakness
• Isolation
• Vulnerability
• Powerlessness

Key Dimensions of Robert Chambers' Deprivation Trap

• Poverty is the root of the deprivation trap
• Poor people lack income and assets, making it difficult to meet basic needs like food, shelter, and healthcare
• Poor individuals often lack access to nutritious food, leading to hunger, stunted growth in children, and weakened immune systems
• Poor nutrition and disease weaken productivity, reinforcing the cycle of poverty
• Limited access to doctors, hospitals, and medicines makes it difficult to treat diseases and injuries
• Poor communities may lack vaccination programs and maternal healthcare, leading to high infant and maternal mortality rates
• Isolation refers to the social, economic, and geographical separation of poor individuals and communities from opportunities, services, and decision-making processes
• Many poor communities, especially in rural areas, are located far from cities and economic hubs, making it difficult to access jobs, markets, and essential services
• Lack of skills, education, and connections means individuals are often confined to low-paying, informal, or unstable jobs
• Vulnerability refers to the insecurity and exposure of poor individuals and communities to risks and shocks such as illness, job loss, natural disasters, and economic crises
• Those affected often work in informal, low-paying, or unstable jobs with no job security, contracts, or benefits
• Lack of savings and financial safety nets prevents them from recovering quickly from economic shocks
• Powerlessness refers to the lack of control, influence, and decision-making power that poor individuals and communities have over their lives and circumstances
• Without access to land ownership, financial credit, or business opportunities, they remain dependent on wealthier individuals or institutions
• Women and children are more likely to face gender-based violence, child labor, and human trafficking

Urban Poverty

• Refers to the lack of basic necessities and opportunities for individuals living in cities and towns
• Rapid urbanization has led to overcrowding, informal settlements, and increased inequality, making urban poverty a critical social issue

Causes of Urban Poverty

• Overpopulation and migration when rural-to-urban migration increases competition for jobs, housing, and services, often leading to unemployment and homelessness
• Unemployment and informal economy, causing many urban poor to work in the informal sector like street vending, domestic work, and construction, which provides low pay, no job security, and no social benefits
• Environmental and health risks because high pollution levels, lack of clean water, poor waste management, and overcrowding increase the risk of diseases

Causes of Rural Poverty

• Dependence on agriculture when many rural communities rely on subsistence farming, which is highly vulnerable to droughts, floods, and climate change
• Low agricultural productivity due to lack of modern technology, fertilizers, and irrigation systems keeps farmers in poverty
• Government neglect and weak institutions cause rural development projects to be underfunded, leaving communities without electricity, clean water, and sanitation
• Limited access to markets and jobs means that poor infrastructure like bad roads and lack of transport isolates rural communities from markets, making it difficult to sell goods or find employment